Independent Petroleum Distributors (KIPEDA) In Trouble As ERC Cancels License


The Energy Regulatory Commission (ERC) has cancelled the license of the Kenya Independent Petroleum Distributors Association (KIPEDA) accusing them of intimidating other distributors.

They have also been accused of allegedly being behind the boycott that has led to the artificial shortage of fuel. The ERC said that KIPEDA’s actions resulted to economic sabotage.

The ERC said that KIPEDA Holdings Limited is no longer licensed to import or export petroleum products

The statement read as follows in part:

“The Commission has grounds to believe that the strike is spearheaded by KIPEDA HOLDINGS LIMITED, a body corporate licensed by the Commission to carry out Import, Export and Wholesale of Petroleum Products (Except LPG). The Commission therefore wishes to inform members of the public that the action by KIPEDA Holdings Limited amounts to economic sabotage and hereby cancels the licence of the said licensee pursuant to Section 85 of the Energy Act No. 12 of 2006.”

The vehicles affiliated to KIPEDA had opted to down their tool in solidarity with the call made by the Motorist Association of Kenya protesting the implementation of the 16% VAT tax on fuel.

Read:Kenyans To Dig Deeper In To Their pockets As Fuel Prices Set To Increase

Petroleum Principal Secretary Andrew Kamau tied to negotiate with the striking distibutors but was booed and could not effectively communicate therefore forcing him to leave.

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Written by Merxcine Cush

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